No, this is correct. Your NY credit is the lower of NJ or NY tax on the same income. You can't receive a credit larger than what you paid.
For example: If your NJ tax is $1,000. Your credit to NY is $1,000 or less. It can't be more.
Please review your NJ liability and NY entries.
Follow these steps to locate your tax liability for NJ and enter in NY
- Log into your return
- Select state taxes
- Enter the non-resident NJ for which you need the liability
- On the left, go to Tax Tools
- Select Tools
- Select View Tax Summary
- You will see Summary of your NJ Return at the top.
- Locate the line that says Total Tax
- That is the maximum credit for NY
- Return to your resident NY return and enter that number where it asks for the liability for NJ. Sometimes the program will do that for you.
- Some states tax income the federal does not. For example: NJ taxes money you set aside in your retirement plan. Each state has different rules.
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